Verastem (NASDAQ:VSTM) Trading Up 7.6% - What's Next?

Key Points

• Shares rose 7.6% to $5.72 on Monday despite trading volume down ~77% from average, with the stock near its 50‑day moving average (~$5.80) but below the 200‑day (~$7.50).
• Analyst sentiment is mixed but skewed positive: the consensus rating is a "Moderate Buy" with a consensus target price of $16.60, while individual firms range from sell to buy/strong buy.
• Fundamentals show a market cap of about $506M and a negative earnings profile—Verastem missed quarterly EPS by $0.01 while slightly beating revenue estimates, and analysts expect roughly -3.02 EPS for the year; institutional ownership is ~88%.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) were up 7.6% on Monday . The company traded as high as $5.82 and last traded at $5.7160. Approximately 442,925 shares traded hands during trading, a decline of 77% from the average daily volume of 1,916,193 shares. The stock had previously closed at $5.31.

Analysts Set New Price Targets

A number of brokerages have recently commented on VSTM. Wall Street Zen cut Verastem from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings reissued a "sell (d-)" rating on shares of Verastem in a research report on Wednesday, January 21st. HC Wainwright reissued a "buy" rating and issued a $18.00 price target on shares of Verastem in a research report on Friday. BTIG Research reissued a "buy" rating and issued a $19.00 price target on shares of Verastem in a research report on Friday. Finally, Guggenheim reissued a "buy" rating on shares of Verastem in a research report on Tuesday, December 30th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.60.

Verastem Price Performance

The firm has a market capitalization of $505.75 million, a P/E ratio of -1.79 and a beta of 0.43. The company has a debt-to-equity ratio of 1.33, a quick ratio of 3.07 and a current ratio of 3.09. The firm has a 50-day moving average of $5.80 and a 200-day moving average of $7.50.

Verastem (NASDAQ:VSTM - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The biopharmaceutical company reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.49) by ($0.01). The company had revenue of $17.54 million during the quarter, compared to analyst estimates of $16.85 million. As a group, analysts predict that Verastem, Inc. will post -3.02 EPS for the current year.

Hedge Funds Weigh In On Verastem

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VSTM. Russell Investments Group Ltd. lifted its position in Verastem by 182.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company's stock valued at $40,000 after acquiring an additional 2,960 shares in the last quarter. E Fund Management Co. Ltd. purchased a new stake in Verastem during the 2nd quarter valued at $49,000. Nebula Research & Development LLC purchased a new stake in Verastem during the 2nd quarter valued at $53,000. The Manufacturers Life Insurance Company raised its stake in Verastem by 9.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company's stock valued at $67,000 after buying an additional 1,440 shares during the last quarter. Finally, BNP Paribas Financial Markets raised its stake in Verastem by 110.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company's stock valued at $75,000 after buying an additional 4,496 shares during the last quarter. 88.37% of the stock is owned by institutional investors.

About Verastem

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.

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